A Microsoft spokesperson declined to comment when we asked about imminent layoffs, so we don’t really know anything yet. The only piece of tangible evidence we have is that Microsoft isn’t going all out at the Consumer Electronics Show (CES) next month. Chief executive Steve Ballmer isn’t throwing the company’s usual dinner with the press this year, and executives for the Xbox won’t be available for interviews.

Given the economic circumstances, cutbacks of some sort wouldn’t be surprising. First in line is probably the person responsible for making Zunes work, given the epic failure of the Zune last night.